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September 1, 2025 14 mins
One way to increase both the frequency of sale and the Ave dollar per sale is up-sells down-sells and cross-sells.

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Episode Transcript

Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:04):
Hi, you have done to censure.

Speaker 2 (00:09):
Wow for you your.

Speaker 1 (00:19):
Yo. It's the Pipe Man and we are here a
motivation Monday Positively Pipe Man segment of the Adventures of
Pipe Man right here on W four c Y Radio
and I have our resident expert on business with some
powerful business strategies for us once again. So let's welcome
to the show. Michael Barbarita.

Speaker 2 (00:41):
How are you fantastic?

Speaker 3 (00:42):
Dean? How you doing?

Speaker 1 (00:43):
I'm doing great. You know we got I just got
back in from LA and before that I went to
prison at Shawshank Prison. You know the movie. Yeah, so yeah,
it'll be had to do an event at Shawshank is
in for a festival and as like one of the
coolest venues. So now we're back and we're ready to

(01:06):
share some powerful business strategies. There you go.

Speaker 3 (01:11):
So, you know, one of the things that you know,
if you recall from the seventh step profit Formula, two
of the steps and that seven step profit formula once again,
is that twenty percent that business owners should be working
on that drives eighty percent of the revenue.

Speaker 2 (01:26):
And two of the things.

Speaker 3 (01:27):
That are in are in the seventh step profit formula
average dollar per sale, increasing the average dollar per sale
when per customer, as well as the frequency of sale.
So if you sell to the same customer an average
of two times, got to make it three, got to
make it four. So one of the ways, one of

(01:49):
the effective ways to do this is and a lot
of business owners are missing out on this is cross seals,
up sells, and down cells. Now I'm going to give
you a Donald's example of how that works. But but
but the one thing a lot of business owners are
missing of the down cells. So let me just give
you a quick example. So if you go to McDonald's

(02:12):
UH and you order a hamburger, they'll ask you if
you'd like fries and a coke with that. Those are
those across cells because they compliment your your existing they
compliment the hamburger in this case. And then an up
cell would be uh supersizing it. That would be an upsell.
It would be a high higher not necessarily a higher quality,

(02:34):
but certainly it may be a higher quantity, so higher
quality or higher quantity product or service. And then the
down cell would be like like the Kid's burger, something
something that's below the regular hamburger. So that's that is
basically an example and what's great about it is what

(02:57):
what business owners are. Most business owners are missing. Some
of them have cross sells, some of them up sells,
but very few of them have down cells. When somebody
can't afford something that you're offering, it's always best to
have some type of lower level offering, whatever that may be,
so that it's affordable. Uh if in fact budgetary concerns

(03:19):
are in play. So uh, that's those, So those are
the those that cross sells. Down cells and up sells
are are a critical strategy if you want to increase
frequency of sale as well as average dollar for sale.
So it's it's I mean with respect to with respect

(03:40):
to how that how that strategy fits in. So like
for example, in my let's let me just take in
my business. So we have uh, one of our up cells.
If somebody wants to have CFO services, one of our
up cells is CFO services and strategic implementation that combination.

(04:00):
And then for a down cell if they if they
can't afford either CFO services or strategic implementation, we have
a do it yourself program at a lower price for
strategic im limitation. We even have down cells below that
where we have study guides and workbooks for people who

(04:24):
just want to know about down sales, cross sells, and
upsells for one low price. So that's an example. That's
an example in the service business of utilizing up sales,
cross seals, and down cells, and they can be utilized,
you know, and a lot of the thing is a
lot of the times business owners forget to incorporate it

(04:46):
part of their sales process. When I get a business
owner who's only doing thirty thousand a year in sales,
you know, they're startup, they're doing thirty thousand, I'm not
going to sell them a five thousand dollars a month
CFO services and Strategic Limitation program. Okay, I'm going to

(05:07):
probably either give them the sealth Study our self study
and Strategic Limitation program, which by the way, incorporates one
meeting per month so that we can make sure they're
accountable for what they're doing. Because a lot of business
owners will take the will take the do it yourself
and won't do it themselves. So we give them accountable

(05:31):
with the once per month, and we give them a
whole library of videos and workbooks so that they can
perform these implement these strategies. But if I didn't have that,
or if they someone can't. Maybe someone who's doing thirty
thousand a year in sales can't afford five hundred dollars
a month. I can give them, let's say, a workbook

(05:55):
on how to develop a compelling offer, the five components
of a compelling offer.

Speaker 2 (06:00):
So I should be able to sell something that somebody.
That's the whole point.

Speaker 1 (06:07):
And I agree with you too. It's like you have
to you can't just be cookie courtory. You have to
customize something to suit the client's needs, you know. So
not everybody wants forget affordability for a second. Not everybody
wants the full service, you know, So you got to
take that into consideration too, That's right, And.

Speaker 3 (06:30):
That's I think that's the thing a lot of business
owners miss, you know, because even even somebody who does roofing,
who's just thinking of the big you know, roofing plan,
you know, they can down sell people to repairs, you know,
if they if the people don't have the money to
do the whole roof, they can they can also you know,

(06:53):
just do around the chimney where there's a lot of leakage,
where a lot of leakage, and roofing industry.

Speaker 2 (06:59):
There's a lot of leakage around the room the chimney.

Speaker 3 (07:03):
Yeah, so they can make for pairs and sure up
the chimney, uh for you know, if if in fact,
you could you potentially keep a roof going another you know,
five or ten years, if you just uh patch up
the weaknesses like the chimney. So that does once again,
if if you don't have that in your arsenal, you're

(07:25):
gonna miss out on a sale. What's the whole point
of beings?

Speaker 1 (07:30):
Yeah, And I have another perfect example of somebody I know.
It just happened recently. They're getting new windows for their house,
and so they didn't get all of the windows done
because they couldn't afford the whole thing at once. So
they did pick the windows they wanted to do. But

(07:50):
then they're gonna do the other windows, okay because for
a couple of reasons, like you wind all uniform and stuff.
But they're gonna do it at a time when they
have the money to do those So instead of doing nothing,
you know, part of it's being done now, part is
being done later. And then the company itself still in

(08:13):
the long run, ends up making the money and maybe
even more money because it's done separately, you know, and
so the company benefits opposed to a company's like, no,
you have to get them all at once, and then
they lose us in right.

Speaker 3 (08:29):
And and what they'ra and what and what many people
also miss is that thirty four what's a customer buys
to you, there's a thirty four percent chance they'll buy
something else if it's presented to them. So that is
the is the frequency of sale that I'm talking about
where we don't realize that even if we sell a

(08:50):
night of for nine dollars at ninety five cents, that's
a customer, yeah, and that customer has a long term
value associated with it as long as you can see
the market to that customer.

Speaker 1 (09:01):
And again that is brilliant because I've done that my
whole career. Where Like even when I used to be
in the investment business, you know, and our firm minimum
was twenty five thousand dollars. Well, some of my biggest
clients in that business were people that I broke that
rule and let them in for four or five thousand

(09:24):
dollars or even less sometimes. But to your point, once
they're a client, you know, then there's that trust in
that relationship that's already there. And the reason those clients
became my biggest clients is because they probably had more
money than the people that were starting with twenty five thousand.

(09:44):
But because they had more money, they want to test
the waters first.

Speaker 2 (09:48):
Uh.

Speaker 3 (09:49):
So that's amazing. Yeah, I know, And it works across
all industries. It's not you know, it's not industry specific.
We used Hamburgers, we used my business fo services and
strategic im limitation. We use your example in the financial
services industry.

Speaker 2 (10:05):
So it worked.

Speaker 3 (10:06):
This this formula of upsell, cross sell, and specially down
cell works in all all types of industries and in
all times. So I think once again, uh, it's really
valuable for both increasing the average dollar per sale because
you could upsell, and also the frequency of sale because,

(10:30):
like in the example that I gave you with somebody,
if I was able to down sell somebody all the
way down to let's say the five components of a
compelling offer, workbook and study, once they bought that, you know,
they can now look at how to how to prepare,
how to develop a position of market dominance as another example.

(10:53):
So it's it's it's continuous and and and the relationship
can last for years, and the the lifetime valueble customer,
which is a very important metric to follow, elevates. And
you know, one of the things about the average of
the lifetime valueable customer. When I was in the frozen

(11:14):
cookie dough business, that was a critical metric for me
because my opening order was only fifty dollars. But I
knew that once my customer started buying my cookie dough
that they would continue because I believed in my product
and it was a good.

Speaker 2 (11:28):
Product and so.

Speaker 3 (11:32):
And that's why I was able to give away a
two hundred dollars confection of it with every opening order,
even though the only opening order was fifty because I
understood that the long term value of my customer was
five brand and so the trade off was two hundred
dollars for five grand. And so it's an easy decision,
And that's why it's an important metric to understand totally.

Speaker 1 (11:55):
How do people reach out to you to get more
of this type of information.

Speaker 3 (11:59):
Well, go to next Step CFO dot net. They can
download my book for free called Powerful Business Strategies. What
I'd love them to do is to have a book interview.

Speaker 2 (12:09):
Uh.

Speaker 3 (12:09):
The way they can do that is they go to
next step CFO dot net, forward slash contact, fill out
the contact form and in the message box write the
words book interview and UH love to see what we
do Dean is we update our book every year or so. Why, Well,
you know there's higher you know there's higher higher inflation,

(12:32):
there's there's tariffs now right, there's interest rates, and we
want to make sure we know our strategies work. We
just like industry information to prove out what we already know.
And so what happens is we keep speaking with business
owners to make sure that we uh constantly update our
book and that the strategies for things for those particular

(12:56):
industries are working. Yeah, so uh with we would love
to interview.

Speaker 1 (13:02):
Well, that's beautiful. I love all that you what you do.
That's why you're on the positive and positively Pipeman segment
And this one I loved especially because I think is
very important for every business to know and every salesperson
to know, because there's so many salespeople out there that
I train that you know, they either go for all

(13:25):
or nothing, and usually what's in between the all or
nothing or what end up your biggest clients, your most sales,
your most average dollars and long term value.

Speaker 2 (13:36):
There you go, totally agree.

Speaker 1 (13:39):
Well, thanks once again for being on the positively Pipeman
segment of the Inventors of pipe Man right here on
W four c Y Radio, and we look forward to
hearing from you again.

Speaker 2 (13:49):
Thanks Dave, appreciate it.

Speaker 3 (13:51):
Thank you for listening to the adventures of Pipemin on
W for CUI Radio.
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